BMI View: We hold positive medium-term outlook for the Philippines' IT market, which has strong domestic economic momentum that is relatively insulated from China and commodity market risks that could potentially drive outperformance. Rising incomes will benefit the PC market, but we adopted a more cautious outlook this quarter due to potential for smartphones to cannibalise spending. The enterprise software and services outlook remains very strong, and will be the main driver of an IT market spending CAGR of 8.1% throughout 2016-2020.

Latest Updates & Industry Developments - Computer Hardware Sales: PHP107.4bn in 2016 to PHP124.2bn in 2020 at a compound annual growth rate (CAGR) of 3.7%. Downgrade in Q4 as the risk of Filipinos bypassing the PC era has increased witha rapid expansion of the smartphone market in 2015 and H116. - Software Sales: PHP30.9bn in 2016 to PHP44.7bn in 2020 at a CAGR of 9.6%. Solid growth momentum in the software segment with large and SME investment potential over the medium term - IT Services Sales: PHP68.7bn in 2016 to PHP113.7bn in 2020 at a CAGR of 13.4%. The services segment is forecast to outperform, based on the broader adoption of outsourcing and cloud computing technologies by the public and private sectors.

"Total spending in the cloud computing, network function virtualisation and software-defined networking markets will grow from USD7 billion in 2015 to USD28 billion in 2020, at a CAGR of 32%." Communications ...

“Factors such as growing demand for hybrid cloud storage, increasing need for enterprise mobility, and the need for reduced infrastructure cost are driving the cloud storage market” The cloud storage ...